Has Spring Already Sprung?

If
you look at the weather, only the hardiest of flowers and trees have started
awakening from their winter slumber, and the temperatures are anything but
balmy. Nobody I know has put away their winter coats for the season.

The
housing market seems to hold a completely contrary opinion, however. According
to statistics from the National Association of Realtors (NAR), the spring
market began weeks ago!

February
existing home sales rocketed to an 11.8% increase from the prior month, while
economists surveyed by the Wall Street Journal had expected a relatively
modest increase of only 3.2%. NAR also reported inventory numbers that could
mean our shortage of homes to sell is finally easing, stating that 1.63 million
existing homes were listed for sale in February, a 3.2% increase over the
previous February, representing a 3.5 month supply at current sales rates.

NAR’s
chief economist, Lawrence Yun, believes the February data represents a
“powerful recovery” in existing home sales that should continue into the
spring, now that the Federal Reserve has indicated it is through raising rates
for the foreseeable future. The 11.8% increase is the strongest performance
since December 2015, and accompanies an overall 3.6% increase in the nation
median sales price for previously owned homes.

In
a normal year, the first week of April is the prime week to list your home for
sale. Those listings get 14 times the property views online and have 5% less
competition from sellers who come on later in the spring. Results: on average
those listings sell six days faster.

Many
of us Maryland realtors have had a busier than normal winter season, thanks to
few major snow events and extreme cold snaps. There are many signs that sales
will accelerate as “true” spring arrives with its promise of warm temperatures,
beautiful flowers, and even more listings coming on the market to increase sales
inventory further.
We will see what effect this year’s early start
has on spring’s strongest sales month. But … no matter what the weather says,
spring is here!